MINUTES OF THE JOINT MEETING OF

      ASSEMBLY COMMITTEE ON WAYS AND MEANS

      AND

      SENATE COMMITTEE ON FINANCE

 

      Sixty-seventh Session

      April 21, 1993

 

 

 

The joint meeting of the Assembly Committee on Ways and Means and the Senate Committee on Finance was called to order by Chairman Morse Arberry Jr., at 9:30 a.m., on Wednesday, April 21, 1993, in Room 119 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda.  Exhibit B is the Attendance Roster.

 

 

ASSEMBLY COMMITTEE MEMBERS PRESENT:

 

      Mr. Morse Arberry, Jr., Chairman

      Mr. Larry L. Spitler, Vice Chairman

      Mrs. Vonne Chowning

      Mr. Joseph E. Dini, Jr.

      Mrs. Jan Evans

      Ms. Christina R. Giunchigliani

      Mr. Dean A. Heller

      Mr. David E. Humke

      Mr. John W. Marvel

      Mr. Richard Perkins

      Mr. Robert E. Price

      Ms. Sandra Tiffany

      Mrs. Myrna T. Williams

 

SENATE COMMITTEE MEMBERS PRESENT:

 

      Senator William J. Raggio, Chairman

      Senator Raymond D. Rawson, Vice Chairman

      Senator Lawrence E. Jacobson

      Senator Bob Coffin

      Senator Diana M Glomb

      Senator William R. O'Donnell

      Senator Matthew Q. Callister

 

ASSEMBLY COMMITTEE MEMBERS ABSENT:

 

      None

 

SENATE COMMITTEE MEMBERS ABSENT:

 

      None

 

STAFF MEMBERS PRESENT:

 

      Mark Stevens, Fiscal Analyst

      Dan Miles, Fiscal Analyst

      Gary Ghiggeri, Deputy Fiscal Analyst

      Bob Guernsey, Deputy Fiscal Analyst

 

 

Chairman Arberry explained the joint meeting was being held to discuss the Governor's reorganization proposal.  Chairman Arberry stated public testimony would be permitted at a later date.  The intention of the meeting was to develop a preliminary consensus from both the Assembly Committee on Ways and Means and the Senate Committee on Finance.

 

Senator Raggio explained during the course of budget review certain consensus had been developing among the members of the Senate Finance Committee and the Senate Government Affairs Committee.  Early in the Session a select committee had been appointed by the Speaker of the House on the Assembly side and a like committee was selected on the Senate side.  Those committees held joint meetings for a period of time.  The Senate did not have a reorganization bill draft.  Essentially since the budget was involved to a large degree it became necessary to develop some consensus on how the final reorganization suggested by the Governor would be implemented.  Senator Raggio stated the legislative counsel indicated approximately five to six weeks were required to compose the reorganization bill.  Therefore the fundamentals of the reorganization needed to be planned.

 

Senator Raggio reported a consensus had been reached by the members of the Senate Finance Committee some of whom also served as members of the Senate Government Affairs Committee.  In large measure there was general support for the Governor's plan for reorganization.  The concept of reducing the number of Departments and reducing the number of free-standing agencies had solid appeal and support from the Senate.  The Senate would prefer to keep the number of departments at the number suggested by the Governor.

 

Senator Raggio referred to the Comparison of Current Organization to Governor's Recommend and Alternative (Exhibit C).  The recommendations of the Senate Finance Committee were as follows: In the area of Finance and Administration the recommendation was to consolidate both functions into one Department of Finance and Administration.  The Senate recommended an autonomous and independent Department of Personnel.  Additionally because of the intense efforts over the preceding sessions in reviewing data processing and all aspects of information services, the Senate recommended a Department of Information Services be created. 

 

The Senate supported the Governor's recommendation to create a Department of Business and Industry.  The Senate recommended and the Assembly concurred with the separation of the Department of Education from the Department of Education, Health and Human Services.  The Senate concurred with the Governor's recommendation for a Department of Human Services, Department of Employment, Department of Training and Rehabilitation and a Department of Museums, Library and Arts. 

 

Senator Raggio stated in the area of infrastructure the Governor recommended a Department of Environmental Protection, Department of Natural Resources, Department of Transportation and as a stand-alone commission, the Colorado River Commission.  The Senate proposed a Department of Conservation and Natural Resources which would include the functions of the proposed Department of Environmental Protection.  The Senate supported the concept of the Department of Transportation and the retention of the Colorado River Commission. 

 

Senator Raggio explained the Governor recommended three departments in the area of Public Safety: Department of Corrections, Department of Motor Vehicles and Department of Public Safety.  The Senate proposed the Department of Motor Vehicles and the Department of Public Safety be consolidated into the Department of Motor Vehicles and Public Safety.  Additionally the proposed Department of Corrections include the functions of Parole and Probation. 

 

Senator Raggio explained the Governor recommended two special purpose agencies, the Public Employees Retirement System and the State Industrial Insurance System.  The Senate concurred with the Governor's recommendation.

 

The Senate Finance committee recommended 13 Departments.  In the functional area of Finance and Administration: Department of Finance and Administration, Department of Taxation, Department of Information Services and the Department of Personnel.  In the functional area of Commerce and Industry:  Gaming Control Board, Public Service Commission, Department of Business and Industry and Commission on Economic Development and Tourism.  In the functional area of Education, the Department of Education.  In the functional area of Human Services: Department of Human Resources, Department of Employment, Training and Rehabilitation and Department of Museums, Library and Arts.  In the functional area of Public Safety: Department of Prisons and Department of Motor Vehicles and Public Safety.  In the functional area of Infrastructure: Department of Conservation and Natural Resources, Department of Transportation and the Colorado River Commission.  In the functional area of Special Purpose Agencies: Public Employees Retirement System and the State Industrial Insurance System.

 

Chairman Arberry indicated the Assembly Committee on Ways and Means concurred with the recommendations outlined by Senator Raggio.  Chairman Arberry added the Governor recommended the functions of the demographer be transferred to the Department of Taxation however, the Assembly recommended the demographer remain within the University system.  Senator Raggio agreed with Chairman Arberry's remarks.

 

Mr. Marvel and Senator O'Donnell supported the reorganizational plan as explained by Chairman Arberry and Senator Raggio.

 

Senator Raggio commented the Senate agreed the responsibilities of the constitutional officers should not in any way be diluted by the reorganization.  Chairman Arberry indicated the Committee on Ways and Means agreed.

 

 

Speaker Dini explained the Department of Personnel was recommended as a stand-alone agency in order to avoid any conflict between the Administration and the employees of the state.  Additionally the Department of Information Services was developed to streamline the data processing functions in the state.

 

Senator Callister supported the recommendation to keep the Department of Personnel autonomous to retain flexibility and independence within the Executive Branch.

 

Senator Glomb asked if an internal audit unit would be established within the Department of Finance and Administration.  Chairman Arberry explained the proposal was under review. 

 

Senator Glomb asked if any further information was available regarding the proposed combined tax audit teams.  Chairman Arberry explained the proposal was in subcommittee under review.

 

Mrs. Evans commented the Assembly Committee on Ways and Means had heard testimony from the Department of Labor regarding the proposed combined tax audit teams.  Although the budget had not been closed the information gleaned from the hearing had been transmitted to the Senate.  Senator Raggio stated legislative staff was analyzing the cost of restructuring the combined tax audit teams.  A preliminary assessment revealed a cost of approximately $3.5 million.  Senator Raggio commented the committee was aware of the concerns expressed by the Employment Security Department and the U.S. Department of Labor.

 

Senator Rawson asked if the legislative staff could be directed to begin drafting the reorganization bill.  Chairman Arberry indicated at the conclusion of the meeting, staff would begin drafting a preliminary bill. 

 

Ms. Giunchigliani asked if the Department of Human Services should be the Department of Health and Human Services.  Senator Raggio explained at the recommendation of the legislative counsel, name changes should be avoided whenever possible.

 

Ms. Giunchigliani commented Lieutenant Governor Sue Wagner would propose the combination of the Economic Development Commission and the Commission on Tourism. 

 

Mr. Price asked if the elimination of the climatologist would be discussed.  Chairman Arberry explained details of the reorganization would not be discussed at this time.

 

Senator O'Donnell requested all revisions of the reorganization bill be exchanged between the houses.  The committees agreed to readily exchange information.

 

Senator Coffin supported the proposal not because of the agreement of the Chairmen but rather as a result of extensive review of the proposed reorganization over the past three months.  He hoped the readjustment of the proposal would not meet with serious objections from the Administration.

 

Senator Rawson suggested the Department of Museums, Library and Arts be functionally located under the Department of Education.  The committee agreed to take the recommendation under review.

 

Mrs. Williams complemented the two committees for the spirit of cooperation.  She also complemented Chairman Arberry for requesting the input of each member of the Assembly Committee on Ways and Means to build consensus.  Senator Raggio indicated the consensus of the Senate Finance Committee was derived in the same manner.

 

Mr. Heller concurred with Mrs. Williams comments.  Mr. Heller asked if the Select Committee on Reorganization's responsibilities were absolved.  Chairman Arberry explained the committee would report the information to the select committee.  Mr. Heller asked if the bill would be introduced through the Assembly Committee on Ways and Means or Government Affairs.  Chairman Arberry indicated the committee to introduce the bill had not been decided.  Speaker Dini indicated the chairmen of the select committees were fully informed of the progress.

 

Senator Raggio asked the Legislative staff begin to develop the alternative reorganization plan.  Senator Raggio stated the Senate would begin to work very rapidly within the indicated departmental framework.  He indicated a number of budgets would be closed as a result of the joint meeting.  Chairman Arberry echoed Senator Raggio's remarks.

 

Senator Callister asked if general issues involving such items as the capacity to transfer funds within agencies, reorganization savings associated with specific positions and the finite structure of the reorganization would be discussed.  Chairman Arberry explained the committee on Ways and Means opposed transfering funds between departments.  Senator Raggio concurred the transfer of funds between departments was inappropriate.  However, assigning the "value of" a position as reorganizational savings was understandable.  Senator Raggio said the Senate Finance Committee wished to be informed of the positions which would be identified by the Administration as "value of" savings.

 

Mr. Humke asked how reorganization would impact boards and commissions and specifically where the impact would be from separate fund money to General Fund money.  He also asked for a legislatively generated balance sheet of reorganization costs.

 

Senator Jacobsen commended the legislative legal staff for excellent bill drafting efforts.  He also noted none of the decisions made at the meeting were final.  Senator Raggio said all discussion and decisions made at this meeting were dependent upon the cost of modification to the Governors reorganization plan.  Chairman Arberry concurred with Senator Raggio's comments.

 

Mr. Price asked where the Department of Science and Technology would be located.  Chairman Arberry indicated the federal government funded the Department of Science and Technology.

 

There being no further business before the committee, Chairman Arberry adjourned the meeting at 10:00 a.m.

 

 

            RESPECTFULLY SUBMITTED:

 

 

                                   

            Courtnay A. Berg

            Committee Secretary

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Assembly Committee on Ways and Means

Senate Committee on Finance

April 21, 1993

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